Habib & Associates
Honesty • Integrity • Experience

Real Estate Law

Refinance Transactions

 
 

The follow summary describes the process of how our office handles your mortgage refinance transaction:

Step 1

In preparation for the closing of your refinance transaction, you will be required to do the following:

  • Arrange mortgage refinancing. Advise your broker or lender to fax or email all mortgage documents to our office as early as possible before the scheduled closing date. You must make all arrangements directly with your lender concerning frequency and mode of payment. Remember to discuss with your lender any extra charges they might require (for eg. CMHC, GE charges, administration fees, appraisal fees, commitment fees, etc.).
  • Advise us of any mortgages or secured lines of credit that you currently have registered on the property, and provide us with the mortgage reference numbers.
  • Inform yourself of your mortgage payout figures. Prior to having our office prepare any documents, inquire with your bank as to what penalties, administration fees, discharge fees, etc., will be charged. Please be aware that on mortgage payouts, daily interest applies to the next business day as per your bank's instructions.
  • Provide us with a copy of your most recent property tax bill marked paid and/or proof of payment.
  • Contact your home insurance broker to advise them of the pending change of your mortgage lender and provide us with the broker's contact information so that we may request an insurance binder before closing. The binder must indicated 1st Mortgage and 2nd Mortgage (if applicable) as the institution(s) from which you are borrowing (usually the head office not the local branch).
  • Advise us immediately if you are unavailable to come to our office on or before closing to execute the closing documents. Depending on the circumstances, our recommendations may include: appointing an attorney by way of Power of Attorney (if permitted by your mortgage lender) to execute the documents on your behalf; changing the closing date; or making arrangements to meet with a lawyer in the jurisdiction where you are located to execute the closing documents (this will likely entail you incurring additional legal fees for that lawyer).
  • Inform us of any potential problems such as court judgments on title, matrimonial separation, tax arrears, shortage of funds to pay mortgage(s), house problems, etc.

Step 2

  • In preparation for the closing of your refinance transaction, we will:
  • Prepare the usual documents for the closing of the transaction
  • Conduct a sub-search of your title
  • Request, obtain and review payout figures of any outstanding amounts on any mortgage(s) and arrange for payment of these from refinance proceeds if required;
  • Arrange a title insurance policy for the lender as required by them
  • Meet with you for final signatures
  • Remit the balance of the refinance proceeds to you after paying out all existing mortgages, debts, etc., and deduct our fees and expenses. These proceeds can be given to you directly or deposited into your bank account. You must provide us with a VOID cheque for this service.
  • A final reporting letter will be forwarded to you following the closing.

Step 3

We will contact you before the closing date to arrange an appointment to review your file and sign your final documents. This will be the only time we contact you unless any issues arise with your file and/or we require additional information. The final appointment is usually held one (1) or two (2) days before your closing day.

At this time, we will require that you bring the following:

  • Two pieces of identification (at least one with photo). Acceptable ids include: driver's licence, permanent resident card, passport, Ontario new Photo ID card, credit card and birth certificate. If you do not have adequate identification, please contact us well before the closing date to discuss.
  • VOID cheque (if you would like the refinance proceeds to be automatically deposited into your bank account and to confirm the account from which your mortgage payments will be debited).
  • Copies of all up-to-date bills that may be required to be paid out by us from the mortgage advance

Step 4

On the day of closing, your transaction will be completed by 5:00 p.m. Once the transactions closes, and registration occurs, we will notify you that the transaction has been completed.

If you wish to pick up your mortgage proceeds personally, you may do so at our office once you have been notified that the cheque is ready. However, if you have requested direct deposit, please note that your deposit may only be effective the following business day, depending on when we receive your proceeds and your bank's policies.

If we are registering a secured Line of Credit for you, our office sends a confirmation form by fax to your lending institution to notify them that your mortgage has been registered on the day of closing. Once this form has been received by your institution, you are free to use your credit line.

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